USD/CNY rises as China tightens rare earth export controls

USD/CNY has gained 0.2% to 7.2850 following China's Commerce Ministry announcement of stricter rare earth export regulations. The new rules require domestic exporters to declare final shipment destinations and immediately ban exports related to weapons of mass destruction development. This move escalates trade tensions and could impact global supply chains for critical minerals used in electronics, defense, and renewable energy sectors. The Chinese yuan weakened as markets anticipate potential retaliatory measures from trading partners and possible disruptions to China's export revenues. Technical indicators show USD/CNY testing resistance at 7.2900, with momentum building for a potential breakout toward 7.3000. Support remains at 7.2700 (50-day moving average). Traders should monitor upcoming Chinese trade balance data and any responses from US or EU officials, as further escalation could accelerate yuan depreciation and strengthen the dollar's safe-haven appeal in Asian trading.